Tatas plan to merge CV & passenger car dealership

MUMBAINEW DELHI: Tata Motors plans to combine distribution platforms for passenger cars and light trucks capable of carrying passengers, as it seeks to boost margins for dealers and bring retailing for products such as the Winger Platinum, Venture and the Xenon under one umbrella, three people familiar with the development said.

India's largest automobile major is looking to sell Nano, which posted an upsurge in sales in December after successive decline in growth, through truck and passenger car services centres. The company's multi- purpose vehicle, Venture, which is part of the Ace family of commercial vehicle platform, will be sold along with Indica and Indigo by month-end, said automobile industry executives.

"We have started selling Platinum in passenger vehicle dealerships. This will help in expanding distribution apart from combining financial strength," said a Mumbai-based passenger vehicle dealer of Tata Motors. An email sent to the company did not elicit any response. Tata Motors' officials declined to comment.

The move reflects a change in marketing plan in tandem with the changing times. Faced with rising overhead costs, dealers have been demanding better profitability from sales and vehicle service operations. New model line-up will help the dealers to extend the customer base.

"The margins have taken a hit as sales of models like Indica and its variants have not grown and Nano is yet to bring in volumes. Fiat Auto (Tata Motors JV partner) is also facing tough times as sales of its cars are not so encouraging. So, the extension of vehicles like Venture will add to our sales and service operations," said a New Delhi-based Tata Motors dealer.

In the early 90s, passenger cars Estate and Sierra did not bring much volume and were retailed as part of the truck division. With the launch of Indica in 1998, the company moved the Sumo, Safari, Estate and Sierra to the passenger car division.

While between April and December last year, Tata Motors vehicle sales grew by 28% at 5.24 lakh units, the passenger vehicle sales posted 30% growth at 2.48 lakh units.